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September 09, 1998 - Image 2

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The Michigan Daily, 1998-09-09

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2A - The Michigan Daily - Wednesday, September 9, 1998
Fed officials speak with Northwest, pilots

House yesterday dispatched two of its
big guns to Minnesota to help get
Northwest Airlines and its striking
pilots back to the bargaining table.
White House spokesperson Barry
Toiv said deputy counsel Bruce
Lindsey and Transportation Secretary
Rodney Slater would meet first with the
federal mediator who has been working
with the two sides.
Lindsey, known as "the enforcer"
on Capitol Hill, and Slater will
remain in Minnesota "as long as they
can be useful there. 'They are primari-
ly there to assess the situation," Toiv
Operating as White House deputy
counsel, Lindsey has been thrown into
some of the administration's toughest
battles. He was Clinton's representative
in negotiations for a national tobacco
deal and for settlement of strikes by
baseball players and American Airlines
pilots. Clinton halted the American
strike just minutes after it began last

As the federal mediator prepared to
meet with Lindsey and Slater,
Northwest said it issued temporary lay-
off notices yesterday to 567 part-time
reservation agents, boosting to about
28,300 the number of non-striking
employees who have been laid off since
the strike began.
"We continue to evaluate our staffing
levels in light of the pilots' union
strike," said Dwayne Tucker, Northwest
vice president-human resources.
Yesterday was the third day of talks
aimed at resumption of negotiations.
Northwest and the pilots met separately
with a mediator Saturday and Sunday in
Security was tight at the suburban
hotel used as a meeting site. A blue
screen and a large plant blocked the
hallway leading to the area where talks
were being held.
In its 11th day, the strike by
Northwest's 6,100 pilots is the longest
airline strike since 1989, when
President Bush refused to step into a
machinists' strike that led to the col-
lapse of Eastern Airlines. The dispute
centers on pay and job security.
Clinton is under pressure from some
politicians and business leaders to order

.D It's important to let the
negotiation process continue."
- Jim Manley
Spokesperson for Sen. Edward Kennedy (D-Mass.)

Wall Street reacts to Greenspan speech
WASHINGTON - Federal Reserve Chair Alan Greenspan, demonstrating
anew the impact of his words, ignited the biggest one-day point surge in Wall Street
history by suggesting he would consider cutting interest rates if America's "oasis
of prosperity" is further threatened by global economic troubles.
Greenspan didn't specify any time frame for action in his speech Friday, but tlI
mere suggestion the Fed is now considering rate cuts was all investors needed to
The Dow Jones industrial average was up more than 300 points within an hour
of the opening bell yesterday and ended the day 380.53 points higher, a record sin-
gle-day gain that surpassed the 337-point improvement after last October's 554-
point plunge.
The Wall Street rally yesterday was a replay of strong gains Monday in many
Asian and European markets when New York markets were closed because of
Labor Day.
But economists urged some caution in the midst of the euphoria, contending that
investors may be letting their hopes get ahead of Greenspan's actual words.
"Greenspan was telling the world that he stands ready to ease, but he hasrl
made up his mind yet that such a move will be necessary," said Mark Zandi, econ-
omist at Regional Financial Associates in West Chester, Pa.

Northwest pilots back to work for 60
days while a Presidential Emergency
Board looks at solutions to the dispute.
However, pilots could resume their
strike at the end of the 60-day period
and only Congress then could order
them back to work.
Clinton has said he hopes the parties
can reach agreement without interven-
Congress has so far stayed out of the
Sen. Edward Kennedy (D-Mass.) and
Sen. Paul Wellstone (D-Minn.) have
threatened to filibuster a non-binding
Senate resolution that urges Clinton to
intervene in the strike. "Despite the dif-
ficulties that the strike may be posing for
those in the Midwest and elsewhere, the
fact is it's important to let the negotiating
process continue," Kennedy spokesper-
son Jim Manley said yesterday.
Majority Leader Trent Lott, a co-


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sponsor of the measure, has yet to bring
it to the floor for a vote.
Northwest has canceled all flights
through Friday. All flights originating in
Europe and Asia were canceled through
Meanwhile, two feeder carriers that
discontinued Northwest Airlink ser-
vice when the strike began were under
Transportation Department orders to
reinstate service yesterday to 17
towns that have no other scheduled air
service. Northwest was ordered to
provide the necessary ground support
for Mesaba Airlines and Express
Airlines I.
Northwest issued a statement yester-
day saying it would do everything it
could, "within the constraints of our
current pilot strike," to provide the
ground support but could not guarantee
how long the support would remain
SAO PAULO, Brazil (AP) - A
tanker truck flipped and exploded yes-
terday on a Brazilian highway, igniting
two buses returning from a religious fes-
tival, firefighters said. At least 53 people
were killed and dozens more injured.
The crash took place just before 3 a.m.
on the Anhanguera Highway near
Araras, 110 miles northwest of Sao
"The tanker truck lost control and
flipped," Araras fire official Wilson
Lima said. He said a liquor truck
rammed it from behind, and fuel the
tanker was carrying spilled onto the
The buses were in the pool of liquid
when it burst into flames, Lima said.
The tanker was carrying thousands of
gallons of fuel.
"It was horrible. People were scream-
ing, their bodies on fire, and trying des-
perately to escape through the win-
dows," Priscila Cordeiro, one of the sur-
vivors told TV Globo network. "None
of us could do anything to help. We
would have died if we tried."
Joao Mesquita managed to save him-
self and his 2-year-old son, but his wife
died in the flames.
"It all happened very quickly," he
said. "The fire destroyed everything
within minutes."
Earlier in the day, the Araras fire
department placed the death toll at 57,
but revised the count after receiving a
report from the city morgue.
Images filmed by an amateur camera-
man and aired by TV Globo showed the
vehicles completely engulfed by flames.
Firefighters quoted by the network
said pieces of aluminum from the buses
had welded together.
The four vehicles were reduced to
twisted and charred metal, and a long
stretch of the highway's median strip
was blackened. A row of coffins was
placed on the road.
Lima said 39 people were hospital-
was blackened. A row of coffins was
placed on the road.
Lima said 39 people were hospital-
ized, but most were released.
The buses were heading to Anapolis
with pilgrims returning from Aparecida
do Norte, a town 110 miles northeast of
Sao Paulo that huses the basilica of

Our Lady Revealed, Brazil's patron
China leads
world *
BEIJING (AP) - China executed
more people last year than the rest of the
world combined, despite an overall drop
in the number of death sentences
Chinese officials carried out, Amnesty
International said in a report yesterday.
China sentenced to death at least
3,152 people and executed at least 1,876
in 1997, the report said.

Six die in Colorado
teens' killing spree
AURORA, Colo. -- Two teen-agers
carrying shotguns and wearing ban-
danas over their faces allegedly killed
five people in two homes a few blocks
apart Monday. Then one of the boys
apparently killed the other, police said.
The surviving suspect, a 17-year-old
whose name was not released by
police, was booked yesterday on six
counts of first-degree murder.
All six victims and the 17-year-old
boy knew each other. But police were
unsure what triggered the killing spree,
one of the worst ever in this Denver
"The motive is really the $64,000
question," police spokesperson Bob
Stef said. "We don't know if it was out
of anger, revenge, involving someone
Neighbors called police Monday
afternoon after hearing shots and
screams at a two-story blue home with
white shutters. Inside, police found the
bodies of Penny MedIa, Greg Medla,

believed to be her son; and his girl-
friend, Marissa Avalos. Peggy MedIa's
6-year-old girl and 9-year-old-boy were
not hurt.
Witnesses told officers that Michael
Martinez, and another teen-age b
strode down the street, walked into the
home and opened fire.
Court upholds
McVeig conviction
DENVER -- A federal appeals court
on yesterday upheld the conviction of
Oklahoma City bomber Timothy
McVeigh, who claimed testimony from
victims' relatives produced a verdict a4
sentence based on emotion rather than
The appeals court also rejected eight
other avenues of appeal, including pretri-
al publicity, juror misconduct and barred
testimony that others may have carried
the worst bombing on American soil.
McVeigh was convicted of murder,
conspiracy and weapons-related charges
in the April 19, 1995, bombing of th
Alfred P. Murrah Federal Building.


Russian political
standoff intensifies
MOSCOW - Boris Yeltsin hesitated
yesterday over ramming through his
unpopular choice for prime minister,
while opposition and religious leaders
warned that the political standoff could
spark civil war in Russia.
The nation's top clergy expressed
fears of unrest, praying publicly before
Russia's holiest icon for divine protec-
tion against "misfortunes, sorrows and
internecine war."
Yeltsin conferred with top aides at
his country home amid growing spec-
ulation that he may choose a compro-
mise candidate to stave off a show-
down with the Communist-dominat-
ed lower house of parliament, the
State Duma.
Up to now, Yeltsin had insisted that
acting Prime Minister Viktor
Chernomyrdin was his only choice,
but the Duma on Monday rejected
Chernomyrdin for a second time.
Yeltsin, who is known for trampling
over his political opponents, has
compromised before in the face of

popular anger, which has been build-
ing rapidly.
The president has one more chance
to win parliamentary approval for 10
prime ministerial pick. If the Duma
refuses to confirm the candidate,
Yeltsin must dissolve the legislature
and call parliamentary elections within
three months.
Afghanistan houses
embassy bomber
KABUL, Afghanistan - Osama b
Laden, enemy No. 1 in the United
States, has a home in Afghanistan as
long as he wants it- even if his pres-
ence invites another barrage of U.S.
Tomahawk missiles.
A top Taliban official, Abdul Sattar
Paktis, speaks of the man accused of
masterminding bombings at U.S.
embassies in Kenya and Tanzania as an
old friend and honored guest.
"He is our guest and we will nev
force him out," he said in an intervie
-- Compiled from Daily wire reports.

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